GBP: Could surprise on the crosses; GBP/NZD for the mad contrarians
- The market (myself included) had gotten very bearish on cable in particular and I have the feeling that GBP shorts are still running at high levels.
- I’m no expert in fixed income markets, but surely Gilts are looking more attractive than many of the peripheral EZ markets?
- The GBP has been bashed against exotics like the Kiwi and is trading close to record lows. All you mad contrarians out there should watch the developing inverted H&S on the daily chart.
- Cable has decent technical resistance at 15580 which should be tough to overcome in the short term.